By linking its popular corporate software, Teams, to Microsoft’s messaging and videoconferencing app, the bloc claimed that Microsoft had engaged in antitrust violations with the European Union through “possibly abusive” activities.
Microsoft was notified on Monday by the European Commission of its preliminary assessment that the American tech giant has been “restricting competition” by combining Teams with essential office productivity suites like Office 365 and Microsoft 365.
The main antitrust regulator for the 27-nation bloc, the commission, stated that it believes Microsoft may have given Teams a “distribution advantage” by preventing users from choosing whether to install Teams at the time of software purchase.
Limits on competing messaging apps’ compatibility with Microsoft software may have increased the edge, it was said.
Executive vice-president for competition policy at the commission Margrethe Vestager stated in a statement,
“We are concerned that Microsoft may be giving its own communication product Teams an undue advantage over competitors, by tying it to its popular productivity suites for businesses.”
Additionally, maintaining competition in the market for remote communication and collaboration technologies is crucial since it encourages innovation in these areas.
In an attempt to avoid a fine, Microsoft made certain adjustments last year, including providing the software packages for European clients without Teams.
However, the commission stated on Tuesday that additional work needed to be done to “restore competition” because the improvements alone will not suffice to satisfy its concerns.
“We appreciate the additional clarity provided today and will work to find solutions to address the Commission’s remaining concern. We have unbundled Teams and taken initial steps towards interoperability.” According to a prepared statement, Microsoft President Brad Smith remarked.
Laptops 1000Additionally, the business offered clients all around the world the choice to purchase Office 365 and Microsoft 365 without Teams in April. Word, Excel, and Outlook are among the programs included in the two software packages.
Before the commission renders a final verdict, Microsoft has the opportunity to officially address the charges with a statement of objections.
The corporation may be required to pay “remedies” to allay competition concerns, or it may be hit with a fine equal to as much as 10% of its yearly worldwide income.
The prominent office messaging software maker Slack Technologies, a rival, filed a complaint with Brussels, prompting the commission to launch an investigation in July 2023.
Another business, Alfaview, which makes videoconferencing software, also submitted a second complaint.
Rival messaging service Slack, which is owned by business software manufacturer Salesforce, has claimed that Microsoft improperly combined Teams with its Office suite, which consists of Word, Excel, and Outlook, in order to exploit its market dominance and eliminate competition, in violation of EU legislation.
Salesforce President & Chief Legal Officer Sabastian Niles stated,
“The Statement of Objections issued today by the European Commission is a win for customer choice and an affirmation that Microsoft’s practices with Teams have harmed competition.”
“We value the Commission’s comprehensive examination of Slack’s complaint and implore the Commission to proceed with a prompt, binding, and efficient remedy that strengthens competition, interoperability, and innovation in the digital ecosystem while restoring free and fair choice.”
